The easiest way to lower your mortgage repayments each month is to switch over to a new mortgage deal. This process is known as refinancing your mortgage. Essentially all it means is that you move your existing mortgage loan from one deal onto a new deal which may or may no be with the same mortgage lender.
Why refinance you mortgage?
The main and obvious reason to refinance you mortgage is to reduce the amount of interest you are paying each month. Recent cuts in interest rates have meant that many borrowers that have fixed mortgages are now paying a much higher rate of mortgage than they would if they were to take out a new loan today.
In addition to recent cuts in interest rates, many borrowers find their monthly repayments have risen sharply after their discounted or teaser interest rate period has expired. Once their repayments move to post teaser rates many borrowers suddenly find themselves unable to meet their repayments or having to cut their expenditure elsewhere.
What if I have bad credit?
Refinancing is usually a great way to reduce your mortgage repayments, but is it possible if you have a poor credit score? It is a fact that if you have a bad credit score you will end up paying more interest than a borrower with a great credit score however you should still be able to refinance.
There are numerous specialist lenders out there that specialize in supplying mortgages or refinance to borrowers with poor credit scores. Approaching one of these lenders is the best plan for someone looking to refinance who may have a poor credit rating.
For more deatails about how to refinance your mortgage or how to earn extra income please click here.
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